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Determine the impact of changes

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Suppose that an (R,Q) model is used to manage inventories. The firm is planning changes that will reduce the lead time to receive replenishments, but the firm is also planning on making its assortment more "fashionable", which essentially means that, while the expected demand for each product is unlikely to change, the forecast uncertainty is likely to rise for all products. What can be said about the likely change in the firm's order quantity Q (computed by EOQ)? a) It will surely decrease. b) It will remain the same. c) It will surely increase. d) More information is needed to determine the impact of these changes.

Reference no: EM132070751

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